Ronald Wayne Martin, Tax Evasion, New Hampshire 2015

Hill, NH – Ronald Wayne Martin, 65, formerly of Martin Construction, was sentenced to a year in federal prison for a multi-year scheme to evade paying taxes on over $1.2 million in gross receipts. The sentencing, handed down by the United States District Court for the District of New Hampshire on October 1, 2015, also includes three years of supervised release following incarceration.

Between 2008 and 2010, Martin’s Northfield, New Hampshire-based construction company generated approximately $1.2 million in revenue. However, authorities allege Martin deliberately failed to file federal income tax returns for both the business and himself, effectively avoiding all federal income tax obligations. The investigation revealed a calculated effort to conceal the company’s earnings, utilizing methods designed to obscure the flow of funds.

According to court documents, Martin directed payments for scrap metal sales to be issued to a third party, rather than directly to Martin Construction. Furthermore, a significant portion of the company’s income was diverted for personal use and never deposited into the business’s bank account. This deliberate underreporting of income, coupled with the concealed payments, formed the core of the tax evasion scheme.

The scheme extended beyond income tax evasion. Martin also failed to file federal employment tax returns or remit payroll taxes for his three to eight employees, further compounding the financial crimes. The IRS – Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division jointly investigated the case, uncovering the complex web of financial maneuvers used to defraud the government.

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Legal Ramifications

A federal grand jury indicted Martin on three counts of violating 26 U.S.C. § 7201, the statute covering the willful attempt to evade or defeat tax. He pleaded guilty to these charges on June 23, 2015. The sentence reflects the seriousness of the offense, demonstrating the federal government’s commitment to prosecuting tax evasion cases. The penalties included 12 months of incarceration, three years of supervised release, and likely restitution to cover the unpaid taxes.

Key Facts

Defendant: Ronald Wayne Martin
Location: Hill, New Hampshire
Years of Scheme: 2008-2010
Gross Receipts: Approximately $1.2 million
Statute Violated: 26 U.S.C. § 7201 (Tax Evasion)
Sentence: 12 months imprisonment, 3 years supervised release
Investigating Agencies: IRS – Criminal Investigation, Environmental Protection Agency Criminal Investigation Division

Assistant United States Attorney Mark S. Zuckerman and Senior Litigation Counsel Corey J. Smith of the Department of Justice’s Tax Division prosecuted the case, highlighting the collaborative effort between federal agencies to combat financial crimes. The involvement of the EPA’s Criminal Investigation Division, while not explicitly detailed in the public record, suggests a potential link to other, undisclosed violations that may have triggered the initial investigation.

Source: EPA ECHO Enforcement Case Database

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